In 2018, following Sokoman Minerals discovery hole (44.96 g/t gold over 12m) in the Moosehead Gold District, there was a staking rush in north-central Newfoundland, surrounding the project.
Since then Sokoman secured the backing of billionaire gold investor Eric Sprott and has drilled over 30,000 meters across the project.
They’ve been hitting incredible grades throughout, including 124.2 g/t over 5.1 meters, and are on Phase 6 of an extensive, widely publicized drill program.
Then in Nov 2019, as a private company, New Found Gold Corp announced one of the highest grade most significant gold intercepts ever drilled in the province. Hole 19-01 was reported with a 19.0 meter intercept of 92.86 grams per tonne gold.
The stir that NFG’s Queensway project intercept has made in the market, has helped revive the entire Newfoundland mining and exploration industry.
The province is host to numerous world class deposits within this structural belt, including Marathon Gold’s (MOZ on TSX, MDGPF on OTC) 4 million ounce Valentine Lake deposit.
Marathon Gold today sports a market capitalization of nearly $500 million (CAD), while New Found Gold’s recent IPO pinned them at $231 million.
K9 Gold Corp. (TSXV:KNC, OTC:WDFCF) Stony Lake East is situated between Marathon Gold’s giant deposit and Sokoman’s Moosehead project, and due west of New Found Gold’s massive Queensway property. A preliminary field program in 2019 identified eight areas of highly anomalous to high grade gold (15 g/t) mineralization.
We expect to see strong news flow and heightened investor interest in shares of GLV as the area continues to light up.
Geological Setting Ripe For Massive Discoveries
Deep and long active structures are one of the most important commonalities in big mineral deposits. The Central Newfoundland Gold Belt may be one of the most deep seated structurally prepared environments on the planet.
These deep crustal breaks have been found to be important mineralizing structures for numerous multi million-ounce gold deposits along these very trends. Dalradian’s Curraghinalt deposit in Northern Ireland, Oceana Gold’s Haile Deposit in Southern Carolina and Marathon Gold’s Valentine Lake deposit which lies just southwest of Global Vanadium’s Stony Lake East project, each provide evidence that these structures can be an integral conduit for gold deposits.
K9 Gold Corp. (TSXV:KNC, OTC:WDFCF) Stony Lake East is early stage but is known to have numerous anomalous to high grade gold showings. This prime real estate covers over 13,000 ha and 27 km of strike length along the Cape Rae/Valentine Lake shear structure.
The Company expects to have boots on the ground starting the beginning of Sept. The first phase of exploration will consist of detailed geophysics, geological mapping and sampling to follow up on the 8 areas of highly anomalous to high grade gold mineralization, in order to define a preliminary drill program.
Investors familiar with gold exploration speculation have seen tremendous success in early stage area plays around Red Lake, Ontario, Golden Triangle in B.C. and White Gold District in the Yukon.
Global Vanadium was able to quickly raise $2.5 million on the merits and potential surrounding Stony Lake East. They’re fully cashed up for an extensive exploration and drill campaign, and still have less than 30 million shares outstanding.
A tight share structure and low float are sure to provide additional torque to the share price on continued exploration success on Stony Lake East, as well as surrounding projects.
The Newfoundland Area Play Has Just Begun
The New Found Gold and Marathon stories will be driving news and investor interest into this area for years to come, bringing attention to the juniors exploring and drilling in the area. K9 Gold Corp. (TSXV:KNC, OTC:WDFCF), situated right in the middle, is expected to catch significant attention as a result.
The Moosehead district has already received it’s stamp of approval from billionaire precious metals investor Eric Sprott through his direct investment into Sokoman Minerals. It would be very surprising if Mr. Sprott did not have one eye on GLV’s Stony Lake as they prepare to drill the project.
This is not a scratch and sniff area play – this is the real deal where everyone is cashed up and working/drilling, with loads of news flow and potential discoveries for the foreseeable future.
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